Accounting Information Systems Exam Review
Course Introduction
Accounting Information Systems explores the intersection of accounting principles and information technology, focusing on how organizations collect, process, and utilize financial data to support decision-making and ensure accuracy in reporting. The course covers system design, internal controls, data security, and the application of modern accounting software. Students will analyze real-world cases, learn about the role of databases and other digital tools in accounting functions, and gain practical skills in evaluating, implementing, and maintaining effective accounting information systems within various organizational contexts.
Recommended Textbook
MANAGERIAL ACCOUNTING Version 1.0 by Kurt Heisinger and Joe Hoyle
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13 Chapters
878 Verified Questions
878 Flashcards
Source URL: https://quizplus.com/study-set/3571
Page 2
Chapter 1: What Is Managerial Accounting
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83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/70918
Sample Questions
Q1) Tax accountant
Answer: E
Q2) Enterprise Resource Planning (ERP)systems should be implemented by all organizations since ERP systems are inexpensive and lead to better decisions.
A)True
B)False
Answer: False
Q3) Before purchasing an Enterprise Resource Planning (ERP)system,companies must confirm that the benefits of an ERP system will outweigh the costs of implementation.
A)True
B)False
Answer: True
Q4) Which of the following is a product cost?
A)Supplies used in the Marketing Department.
B)Commissions paid to sales personnel.
C)Maintenance of manufacturing equipment.
D)Clerical support salaries in the Human Resource Department.
E)None of the above.
Answer: C
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Chapter 2: How Is Job Costing Used to Track Production Costs
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44 Verified Questions
44 Flashcards
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Sample Questions
Q1) The predetermined overhead rate is calculated as the estimated activity in the allocation base divided by the estimated overhead costs.
A)True
B)False
Answer: False
Q2) A movie production company would likely use a job costing system to track revenues and costs.
A)True
B)False Answer: True
Q3) When direct materials are transferred into production,the journal entry includes a debit to the Work in Process Inventory account.
A)True
B)False Answer: True
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Chapter 3: How Does an Organization Use Activity-Based
Costing to Allocate Overhead Costs
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71 Verified Questions
71 Flashcards
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Sample Questions
Q1) Refer to Exhibit 3-1.Using ABC,what is the cost per order for the Materials Ordering activity?
A)$462
B)$150
C)$200
D)$110
E)None of the answer choices is correct.
Answer: B
Q2) Which of the following would be the best allocation base for a product designed for a specific customer?
A)Quantity of materials used.
B)Hours of design time.
C)Square feet of space occupied.
D)Number of new products.
E)None of the answer choices is correct.
Answer: B
Q3) Both manufacturing and service organizations use activity-based costing. A)True
B)False
Answer: True
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Chapter 4: How Is Process Costing Used to Track
Production Costs
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58 Verified Questions
58 Flashcards
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Sample Questions
Q1) The production cost report is often prepared using computerized software to minimize math errors and to speed up the process.
A)True
B)False
Q2) The unit cost information for process costing comes from the departmental production cost report.
A)True
B)False
Q3) Refer to Exhibit 4-2.What is the cost per gallon for the mixing process?
A)$5.88
B)$0.50
C)$0.48
D)$0.54
E)None of the answer choices is correct.
Q4) Both process costing and job costing typically include three product costs direct materials,direct labor,and manufacturing overhead.
A)True
B)False
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Chapter 5: How Do Organizations Identify Cost Behavior
Patterns
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69 Verified Questions
69 Flashcards
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Sample Questions
Q1) Refer to Exhibit 5-2.What was the variable cost per unit for the company's most recent fiscal year?
A)$120 per unit
B)$180 per unit
C)$145 per unit
D)$150 per unit
E)None of the answer choices is correct.
Q2) All of the following are steps of the high-low method except:
A)stating the results in equation form Y = f + vX.
B)calculating the fixed cost per unit.
C)calculating the variable cost per unit.
D)identifying the high and low activity data points.
E)None of the answer choices is correct.
Q3) When identifying cost behavior patterns,short-term time periods are always measures in one year increments.
A)True
B)False
Q4) Per unit fixed costs change with changes in activity.
A)True
B)False
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Chapter 6: How Is Cost-Volume-Profit Analysis Used for Decision Making
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79 Verified Questions
79 Flashcards
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Sample Questions
Q1) Refer to Exhibit 6-1.Assume that Larimer Company expects to sell 11,000 units of product this coming month.What is the margin of safety in units?
A)5,000
B)6,500
C)7,400
D)7,000
E)None of the answer choices is correct.
Q2) A change in the sales mix will always decrease the break-even point.
A)True
B)False
Q3) The break-even point in sales dollars is the total sales dollars minus the total contribution margin.
A)True
B)False
Q4) The contribution margin per unit is the amount each unit sold contributes to covering fixed costs and increasing profit.
A)True
B)False
Page 8
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Chapter 7: How Are Relevant Revenues and Costs Used to
Make Decisions
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76 Verified Questions
76 Flashcards
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Sample Questions
Q1) Refer to Exhibit 7-3.If the hats are made internally,what are the total production costs?
A)$25,000
B)$100,000
C)$115,000
D)$175,000
E)None of the answer choices is correct.
Q2) All of the following are qualitative factors that a company should consider in a make-or-buy decision except:
A)Will the supplier consistently make a quality product?
B)Will the supplier have enough capacity if demand increases?
C)Will profit increase by outsourcing the product?
D)Will the morale of current employees be affected by outsourcing?
E)None of the answer choices is correct.
Q3) Refer to Exhibit 7-5.What is the amount of profit or (loss)for Customer Z?
A)$88,000
B)$200,000
C)($20,000)
D)$80,000
E)None of the answer choices is correct.
Page 9
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Chapter 8: How Is Capital Budgeting Used to Make Decisions
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71 Verified Questions
71 Flashcards
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Sample Questions
Q1) When evaluating long-term investment proposals,firms that pay income taxes can ignore the impact these taxes have on cash flows.
A)True
B)False
Q2) Cash flows that are not adjusted for inflation will likely underestimate future cash flows,thereby underestimating the net present value of the investment opportunity.
A)True
B)False
Q3) When using Excel,all of the following are needed to calculate the internal rate of return except:
A)an estimate of the internal rate of return.
B)the net present value.
C)the annual cash inflows and outflows.
D)the initial cash outflows.
E)None of the answer choices is correct.
Q4) Managers often rank investment opportunities by internal rate of return.
A)True
B)False
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Chapter 9: How Are Operating Budgets Created
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68 Verified Questions
68 Flashcards
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Sample Questions
Q1) All of the following appear on the selling and administrative budget except:
A)cash payments for selling and administrative costs.
B)advertising costs.
C)units to be produced.
D)depreciation deduction.
E)None of the answer choices is correct.
Q2) Which of the following best describes the selling and administrative budget?
A)A series of budget schedules outlining the organization's plans for the upcoming period.
B)An estimate of cash expenditures for long-term assets.
C)An estimate of all operating costs other than production costs.
D)A budget that is based on sales projections plus an estimate of desired ending finished goods inventory less beginning finished goods inventory.
E)None of the answer choices is correct.
Q3) All of the following appear on the direct materials purchases budget except:
A)units to be produced.
B)projected sales in units.
C)quantity of direct materials to be purchased.
D)quantity of desired direct materials ending inventory.
E)None of the answer choices is correct.
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Chapter 10: How Do Managers Evaluate Performance Using Cost Variance Analysis
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69 Verified Questions
69 Flashcards
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Sample Questions
Q1) Jake's cheese Company produces gourmet cheese for resale at local grocery stores.Jake's expected to use 0.50 direct labor hours to produce one unit (batch)of product,and the variable overhead rate is $5.00 per hour.Actual results are in for last year,which indicates 45,000 batches of cheese were produced and sold.The company's direct labor workforce worked 27,500 hours,and variable overhead costs totaled $144,000.
(1)Calculate the variable overhead spending variance.
(2)Calculate the variable overhead efficiency variance.
(3)Suggest several possible reasons for the variable overhead spending and efficiency variances.
Q2) Unfavorable variances are recorded with a debit to the appropriate variance account.
A)True
B)False
Q3) The cause of one variance might influence another variance.
A)True
B)False
Q4) Standard cost information never comes from historical data.
A)True
B)False
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Chapter 11: How Do Managers Evaluate Performance in
Decentralized Organizations
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63 Verified Questions
63 Flashcards
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Sample Questions
Q1) An organizational segment that is responsible for costs and revenues is known as:
A)a financing center.
B)a profit center.
C)a cost center.
D)an investment center.
E)None of the answer choices is correct.
Q2) All of the following are false about transfer pricing except:
A)using negotiated transfer pricing is always the best approach.
B)the cost approach can base the transfer price on either the variable cost or full absorption cost.
C)using the cost approach is always the best approach.
D)companies should always use the selling division's variable cost as the transfer price.
E)None of the answer choices is correct.
Q3) An investment center is an organizational segment in which the manager is responsible for costs,revenues,and investment in assets.
A)True
B)False
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Page 13
Chapter 12: How Is the Statement of Cash Flows Prepared and Used
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65 Verified Questions
65 Flashcards
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Sample Questions
Q1) When using the indirect method,losses related to investing activities are adjusted by adding them to net income in the operating activities
A)True
B)False
Q2) Refer to Exhibit 12-3.Which of these would be added to net income as part of the operating activities
A)1,4,& 6
B)3,5,& 7
C)2,3,5,7,8,& 9
D)2,3,5,& 7
E)None of the answer choices is correct.
Q3) The operating cash flow ratio is calculated as cash provided by operating activities divided by current liabilities.
A)True
B)False
Q4) The issuance of common stock would be included in the financing activities
A)True
B)False
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Chapter 13: How Do Managers Use Financial and
Nonfinancial Performance Measures
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62 Verified Questions
62 Flashcards
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Sample Questions
Q1) Which of the following types of companies would have the highest inventory turnover ratios?
A)A company that sells grand pianos.
B)An automobile dealer.
C)A custom home builder.
D)A grocery store.
E)None of the answer choices is correct.
Q2) Which of the following is the best reason to use a common-size analysis?
A)To change financial information in different currencies into a common currency.
B)To evaluate a company relative to its competitors.
C)To calculate trend percentages.
D)To assess nonfinancial measures of performance.
E)None of the answer choices is correct.
Q3) All of the following ratios are used to evaluate short-term liquidity except:
A)the receivable turnover ratio.
B)the current ratio.
C)the inventory turnover ratio.
D)the gross margin ratio.
E)None of the answer choices is correct.
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